--- title: "Karman | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 151.21 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/286500064.md" datetime: "2026-05-15T03:05:39.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286500064.md) - [en](https://longbridge.com/en/news/286500064.md) - [zh-HK](https://longbridge.com/zh-HK/news/286500064.md) --- # Karman | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 151.21 B Revenue: As of FY2026 Q1, the actual value is USD 151.21 B, beating the estimate of USD 150.19 M. EPS: As of FY2026 Q1, the actual value is USD 0.06, missing the estimate of USD 0.0867. EBIT: As of FY2026 Q1, the actual value is USD 21.28 B. ### Segment Revenue Karman Holdings Inc.’s revenue for the three months ended March 31, 2026, increased by $51,086 thousand, or 51.0%, to $151,210 thousand, compared to $100,124 thousand for the same period in 2025. Revenue by end-market for the three months ended March 31: **Hypersonics & Strategic Missile Defense**: Revenue was $35,688 thousand in 2026, up from $30,056 thousand in 2025, an increase of $5,632 thousand (18.7%). **Space & Launch**: Revenue was $43,854 thousand in 2026, up from $33,871 thousand in 2025, an increase of $9,983 thousand (29.5%). **Tactical Missiles & Integrated Defense Systems**: Revenue was $45,260 thousand in 2026, up from $36,197 thousand in 2025, an increase of $9,063 thousand (25.0%). **Maritime Defense Systems**: Revenue was $26,408 thousand in 2026, compared to $0 thousand in 2025, an increase of $26,408 thousand, primarily driven by the Seemann Acquisition. ### Operational Metrics For the three months ended March 31, 2026, compared to 2025: **Cost of Goods Sold**: Increased by $26,672 thousand, or 44.0%, to $87,345 thousand from $60,673 thousand. Labor costs increased by $11,756 thousand (42.5%) to $39,433 thousand. Material costs increased by $13,222 thousand (50.4%) to $39,458 thousand. Overhead increased by $1,507 thousand (36.8%) to $5,598 thousand. **Gross Profit**: Increased by $24,414 thousand, or 61.9%, to $63,865 thousand from $39,451 thousand. **Gross Profit Margin**: Increased by 2.8% to 42.2% from 39.4%. **General and Administrative (G&A) Expenses**: Increased by $5,349 thousand, or 23.0%, to $28,637 thousand from $23,288 thousand. Payroll within G&A increased by $6,334 thousand (95.9%) to $12,938 thousand. Professional fees increased by $4,391 thousand (100.1%) to $8,778 thousand. Share-based compensation decreased by $8,084 thousand (-100.0%) to $0 thousand, as P Units and Phantom Units fully vested in February 2025. **Depreciation and Amortization Expense**: Increased by $7,576 thousand, or 122.2%, to $13,776 thousand from $6,200 thousand, primarily due to amortization of intangible assets from the Seemann Acquisition. **Net Operating Income**: Increased by $11,489 thousand, or 115.3%, to $21,452 thousand from $9,963 thousand. **Operating Margin**: Increased by 4.2% to 14.2% from 10.0%. **Net Income (Loss)**: Net income was $7,794 thousand in 2026 compared to a net loss of -$4,798 thousand in 2025. **Net Income Margin (Loss)**: Was 5.2% in 2026 compared to -4.8% in 2025. **Interest Expense, net**: Increased by $1,273 thousand, or 11.2%, to -$12,646 thousand from -$11,373 thousand, driven by a higher principal balance partially offset by a lower interest rate. **Provision for Income Taxes**: Was -$838 thousand in 2026 compared to -$3,308 thousand in 2025. ### Cash Flow For the three months ended March 31, 2026, compared to 2025: **Net Cash Provided by Operating Activities**: Was $209 thousand, a significant improvement from -$13,584 thousand used in 2025. **Net Cash Used in Investing Activities**: Was -$217,525 thousand, primarily due to the Seemann Acquisition of $210,200 thousand and property and equipment purchases. **Net Cash Provided by Financing Activities**: Was $257,155 thousand, mainly from $260,100 thousand in proceeds from term notes (net of debt issuance costs), partially offset by $1,900 thousand in repayments of Citibank credit facilities. ### Unique Metrics For the three months ended March 31, 2026, compared to 2025: **Backlog**: Was $1,026,903 thousand in 2026, up from $636,350 thousand in 2025. **EBITDA**: Was $37,910 thousand in 2026, up from $18,752 thousand in 2025. **Adjusted EBITDA**: Was $44,786 thousand in 2026, up from $30,319 thousand in 2025. **Adjusted EBITDA Margin**: Was 29.6% in 2026, slightly down from 30.3% in 2025. ### Future Outlook and Strategy Karman Holdings Inc. expects to meet its liquidity needs over the next 12 months through cash from operations, available cash balances, and potentially sales of accounts receivable and borrowings from its revolving credit facility. The company anticipates sufficient funds to cover cash requirements, including debt servicing. 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